Verdict in compensation case annulled

ABU DHABI — The Supreme Federal Court has annulled a verdict issued by a lower court in which a man who sold a commercial outlet to another person was ordered to pay Dh12,000 in compensation because he delayed the completion of transfer procedures of the outlet's ownership.

By A Staff Reporter

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Published: Thu 21 Jul 2005, 10:16 AM

Last updated: Thu 2 Apr 2015, 7:51 PM

Salim S. Obaid, the buyer, filed a case against Darweesh Mohammed at the Fujairah Criminal Court demanding to be paid Dh25,000 because he had bought from Darweesh a shop "Al Masafi National Establishment for Agricultural Materials", for the Dh82,000. However, Darweesh neither legally transferred the commercial licence of the property to the buyer nor the registration and other documents required by the Labour Department.

Salim stated that the condition prevented him from benefiting from the outlet. He estimated the compensation value for damages at Dh15,000 in addition to Dh10,000 being loans to the benefit of the establishment when Salim purchased the outlet. He said he could not collect those sums because Darweesh did not complete the legal transfer procedure of the outlet's ownership.

However, Darweesh said that he was committed to carry out the licence and ownership transfer procedures by himself and that he was up to his commitment and had signed the appropriate documents in which he relinquished the Establishment's licence.

The Court of the First Instance ordered Darweesh to pay Dh12,000.

The two rivals appealed at the concerned court, which upheld the appealed case.

Salim appealed the verdict and the case was ceded to the Fujairah Court for further review. It upheld the appealed verdict.

Salim appealed again requesting that the case be investigated in order to establish the fact that Darweesh had delayed in executing the transfer procedures of the commercial licence, which led to the shutting down of the shop, subsequently causing him damages.

The court proceedings found out that Article (4) of the Establishment's Purchase Contract stipulated that the buyer (Salim) was to bear the transfer expense of the outlet to his name, which meant that delay in such procedures was not the seller's (Darweesh) obligation.

The court, hence, decided to annul the appealed verdict which had ordered Darweesh to pay Dh12,000.

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